Romania continues to struggle with privatisation

Published: 12/28/1999

It seems that the Romanian"s are continuing to have problems with the privatisation of its aerospace industries. Aerostar earmarked for privatisation in September, currently remains without bidders, with the exception of a consortium of employees, which is currently in negotiations with the Romanian State Ownership Fund. Negotiators have however, expressed their desire to find a major strategic investor, but have suggested that full privatisation may not be the only route available to the government, suggesting they make accept a more piecemeal route involving the company"s management. The second privatisation of IAR Brasov is continuing although the early interest of Bell Helicopter Textron, appears to have gone and been replaced with Eurocopter, with whom IAR have had a long-standing agreement for licensed production of the AS 350BA. Although the latter is up against a local consortium, which in Romania can prove to be a formidable opponent in a privatisation process, in which economic logic is not necessarily a paramount factor, as Britten-Norman have found at the other Romanian aerospace privatisation Romaero. One of the bidders has requested a delay in the tender process to allow it more time to come up with a bid, suggesting the IAR privatisation may also have a few hurdles to cross before completion.

Article ID: 1250